Any type of bankruptcy can be a difficult process, so it’s understandable that people make mistakes. Keep reading to explore the most common mistakes to avoid when filing Chapter 11 so that you can be better prepared and equipped to successfully navigate the process. It’s also vital to hire a knowledgeable and experienced Chapter 11 attorney in San Diego that can guide you through each step and ensure everything is done properly.
What should you not do when filing for Chapter 11 bankruptcy?
If you want to be sure you qualify and make the most of bankruptcy, you should be familiar with frequent mistakes. Here’s what you should keep in mind:
1. Not being aware of deadlines
Some of the most common mistakes are not knowing and missing the due dates. Failure to meet these deadlines can lead to delays and your case being dismissed. It’s important to know all the deadlines and make sure you meet them. These include filing documents, making payments, and attending meetings and hearings.
2. Not filing all of the necessary documents
Another mistake to avoid is not filing all the paperwork. Failure to do so can lead to the dismissal of your case. You need to know what documents to file, how to complete them if necessary, and to submit them in a timely manner. Your documents may include the petition, disclosure statement, reorganization plan, and any other required by the court.
3. Not fully disclosing all of your assets
The court needs to have a full and accurate account of all of your assets in order to properly assess the situation and make a decision on the reorganization plan. Additionally, it’s important to make sure that all assets are properly valued, as this can impact the court’s decision. Failing to disclose all of your assets or providing inaccurate information can lead to delays or even the dismissal of the case, so you need to be honest and double-check all the information.
4. Not paying the filing fees
You need to pay the filing and administrative fees to the court clerk upon filing or, with the court’s permission, in up to four installments. The final installment must be paid no later than 120 or 180 days after filing the petition. Not paying these fees may result in the dismissal of your case.
5. Not preparing a good reorganization plan
This plan should include a detailed description of how you intend to reorganize your finances and pay off your debts. It should also include a timeline for repayment, as well as any other information that the court may require.
If a reorganization plan fails, the trustee may have the case dismissed or converted to a Chapter 7 bankruptcy. If your case is dismissed, you may be required to refile for bankruptcy, assuming you’re eligible to do so.
6. Not hiring a bankruptcy lawyer
It’s crucial to consult with an experienced attorney when filing for Chapter 11 bankruptcy in order to understand it properly, ensure you do everything right, and protect your legal rights. They can help you to understand the process better and make it less stressful for you.
Which Chapter 11 attorney in San Diego should you hire?
Our team of skilled and highly qualified bankruptcy lawyers at the Law Offices of Mark L. Miller is at your disposal. We’ll take care of all the aspects of your claim, guide you through the bankruptcy process from start to finish, and help you get the most benefits.
Whether you’re in Pacific Beach or other neighborhoods of San Diego, don’t hesitate to contact us. Book your free initial consultation today!